By Okeoghene Akubuike
The African Export-Import Bank (Afreximbank) has welcomed the introduction of the Africa Credit Rating Agency (AfCRA), instituted to strengthen continental capital markets.
The bank said it is an important milestone in expanding the continent’s capacity to generate credible, independent analysis of African credit risk.
In a statement issued by Vincent Musumba, Communications and Events Manager, Afreximbank, on Thursday, the bank said credit ratings played a crucial role in determining access to capital.
The bank added that credit ratings also influence investor perceptions and shape the cost at which governments, institutions, and businesses finance development.
It said that assessments of African credit risk must remain independent, rigorous, and evidence-based, while reflecting a complete understanding of regional economic structures, local institutions, and continental realities.
The bank stated that AfCRA’s value would be measured by the credibility of its analysis, the quality of its data and the transparency of its methodology.
“AfCRA’s value will also be measured by its ability to deepen the understanding of African sovereigns, sub-sovereigns, and corporate credit.”
Highlighting current market gaps, Afreximbank observed that many African issuers remain unrated, while local-currency and sub-sovereign markets continue to suffer from limited rating coverage.
The bank said it has consistently maintained that African Multilateral Financial Institutions should be assessed on the basis of their fundamentals, performance, legal frameworks, mandates, and operating models.
Commenting on the uniqueness of the African market, Mr Denys Denya, Senior Executive Vice- President, Afreximbank, stressed the need for an authentic approach.
“The rating methodology AfCRA develops must recognise the uniqueness of our environment and its institutional structures.
“ The Agency must set its own standards and not follow those set elsewhere. It must build a unique identity that conforms to an ‘African best practice,” Denya said.
Highlighting the need for operational autonomy as the agency takes off, Denya emphasised the importance of maintaining continental integrity.
“Most importantly, AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans.
“ We must all use it, and in return expect a complete assessment of where we (Africa) stand: the strengths the market has ignored, and the weaknesses we still need to fix,” Denya added.
The bank said that AfCRA should complement existing international and regional rating agencies, broadening the range of credible analysis available to investors while strengthening competition, transparency, and analytical capacity within Africa’s credit markets.
Afreximbank congratulated the African Union, the African Peer Review Mechanism (APRM), and all stakeholders involved in bringing AfCRA from concept to unveiling, expressing optimism about the agency’s future contributions to continental financial efficiency. (NAN)www.nannews.ng
Edited by Vivian Ihechu
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